SBP Unveils BC&FRF for Consumer-Centric Finance

KARACHI: The State Bank of Pakistan (SBP) has unveiled a transformative regulatory framework, the Business Conduct and Fair Treatment of Consumers Regulatory Framework (BC&FRF), under its Vision 2028 strategy to fortify market conduct and bolster consumer protection within the financial sector.

The SBP announced that the framework establishes a robust set of principles and rules governing banks, Development Finance Institutions (DFIs), Electronic Money Institutions (EMIs), and Payment System Operators/Payment Service Providers (PSOs/PSPs). It encompasses the entire product lifecycle—from development and disclosure to service delivery, complaint resolution, and termination—aiming to foster a customer-centric financial ecosystem.

Crafted through exhaustive consultations with industry stakeholders and consumer representatives, the BC&FRF is divided into two segments: Part I articulates outcome-based general principles, while Part II delineates six core pillars: governance and oversight, disclosure and transparency, fair treatment and business conduct, data protection and privacy, dispute resolution, and awareness and capacity building.

The SBP emphasized that the framework champions institutional accountability, ethical practices, and consumer education, ensuring financial institutions deliver transparent information, safeguard customer data, and provide accessible redress mechanisms.

The central bank hailed the BC&FRF as a landmark achievement in cultivating fairness, transparency, and trust in Pakistan’s financial system, reinforcing its dedication to protecting consumer rights and elevating business conduct standards.